As a student studying EE engineering, I realized that i don`t want to have the typical 9-5 60k/year job that`s waiting for me upon graduation.
I worked as a manager at a Domino`s Pizza a few years back, and if I recall correctly, here are some approximate figures for the particular store I worked at.
Location: Residential area with a few schools and big business nearby.
Cost to open a Domino`s Pizza: 300k + rent
Breakdown of the cost/year:
Total sales (after sales tax): 1 million
Labour cost: 35% or 350k
Food cost: 35% or 350k
Franchise fees: 8% or 80k
Rent,heating,electricity,internet,etc.: about 60k
Total cost: 1 million - 350k - 350k - 80k - 60k = 160k
So, my boss was making around 160k per year before tax, which is not bad at all considering it only takes 300-400k to open up a store.
However, keep in mind that these figures are for a very well managed store, as it`s very hard to keep your food and labour cost at below 75%
So, all of this got me thinking I should probably start planning on opening my own.
What do you guys think about starting franchises?
I worked as a manager at a Domino`s Pizza a few years back, and if I recall correctly, here are some approximate figures for the particular store I worked at.
Location: Residential area with a few schools and big business nearby.
Cost to open a Domino`s Pizza: 300k + rent
Breakdown of the cost/year:
Total sales (after sales tax): 1 million
Labour cost: 35% or 350k
Food cost: 35% or 350k
Franchise fees: 8% or 80k
Rent,heating,electricity,internet,etc.: about 60k
Total cost: 1 million - 350k - 350k - 80k - 60k = 160k
So, my boss was making around 160k per year before tax, which is not bad at all considering it only takes 300-400k to open up a store.
However, keep in mind that these figures are for a very well managed store, as it`s very hard to keep your food and labour cost at below 75%
So, all of this got me thinking I should probably start planning on opening my own.
What do you guys think about starting franchises?